Banks Could Be Biggest Winners in Obama's New Foreclosure Plan

[cory777]

Alternet
Democracy Now! / By Amy Goodman and Dean Baker

The biggest winners in Obama's latest foreclosure prevention plan are the banks that created this mess.

April 1, 2010 | AMY GOODMAN: The Obama administration has announced changes to its signature foreclosure prevention program, Making Home Affordable. The initial foreclosure relief program unveiled a year ago was supposed to help up to four million struggling homeowners. So far fewer than 200,000 borrowers have been granted permanent loan modifications. Meanwhile, a record 2.8 million properties with mortgages received foreclosure notices last year, this according to RealtyTrac.

The steps announced Friday would broaden the program to include people who’ve lost jobs, encourage lenders to reduce the principal balances on problem mortgages, and help refinance borrowers who are “underwater,” or owe more than their homes are worth. But will these changes help stem the tide of foreclosures?

link - http://www.alternet.org/news/146228/banks_could_be_bigg...